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Brazil adds 53 tons of gold to reserves

14 July 2021

Brazil has also recently added gold to its reserves. New figures from the central bank show that the country started buying gold in May and added more in June. In May it was a purchase of 11.94 tons and in June the country even added 41.8 tons of the precious metal to its reserves.With this purchase, the South American country joins an increasing group of countries that buy gold. They do so to protect their reserves from economic and political risk. Unlike currency reserves, precious metals have no counterparty risk. The precious metal also has a proven track record as a safe haven in times of crisis.

Brazil buys more than 53 tons of gold

The chart below shows that Brazil last bought a substantial amount of gold in 2012. With the purchases of recent months, the size of the gold reserve has risen to more than 121 tons. At the current market price, this gold reserve is worth $7 billion.In recent years, several central banks have made large purchases of gold. Hungary bought more than 60 tons in March this year, while the central bank of Thailand recently added 90 tons of gold to its stock. In 2019, Poland made a major purchase of more than 90 tons, nearly doubling its gold reserve.Central banks have been adding a lot of gold to their reserves in recent years. In doing so, they hedge against the risk of currency depreciation and the risk of a 'reset' of the monetary system. The precious metal is solid collateral to build a new financial system.

 

Source:https://www.geotrendlines.nl/brazilie-voegt-53-ton-goud-aan-reserves-toe/